DAILY REPORT FOR 8 JANUARY, 2008

NIFTY: - Open 6271 High 6289 Low 6193 Close 6279 (+5 points)
P/E 28.25 P/B 6.54 Adv 20 Dec 30
Supp 6250/6190/6060 Res 6315/6360/6420

SENSEX: - Open 20637 High 20861 Low 20438 Close 20812 (+125 pts)
Supp 20700/20520/20430 Res 20970/21130/21400

One more bounce from lower levels:-
• Markets opened down sharply on weak global sentiment but bounced back strongly as banks and FMCG stocks rallied. Nifty was flat on weak ONGC and Infosys prices, Sensex closed up by 125 points.
• Volumes were average - Rs 23231 Cr in spot market and F&O Vol at Rs 70004 Cr.
• Breadth was flattish – BSE Adv 1591 Dec 1339 Unch 19 NSE Adv 527 Dec 614 Unch 5
• Top Gainers: - Suzlon, ICICI Bank, ITC, RCom, Siemens
Top Losers: - HCL Tech, VSNL, Infosys, ONGC, GAIL
• Foreign Investors sold big Rs 1543 Cr in cash market. Domestic Institutions continued buying support with Rs 327 Cr figure. FIIs bought Rs 716 Cr in index futures and sold Rs 1763 Cr in stock futures.
• Total OI 128200 Cr (+5551 Cr) PCR at 1.37
• Nifty added 5% OI. Premium 9.15
• OI Added:- Colgate 55%, Parsvnath 35%, Minifty 20%, BILT 18%, Satyam 17%, VSNL 16%, Bajaj Hind 15%, Bhusan 15%, HDFC Bank 15%, Patel 15%, TCS 14%, Infosys 13%, Jet 13%, IFCI 12%, TVS Motors 12%
• OI Shed:- TTML 6%, RajeshExpo 6%, Petronet 6%, Hotel Leela 6%, Renuka 4%
Indian ADRs: - http://tinyurl.com/33m7dx

Outlook for Tuesday:-
• Yesterday was another example of how bullish the sentiment has become in Indian markets. We didn’t go down with the global weakness and kept our benchmark Sensex higher. Nifty did not close with big gains but it did come into positive territory.
• Now 6170 looks like a very good short-term support for the Nifty and trend may remain upwards until that gets broken. Bullish sentiment may not be dampened until Reliance Power issue gets through.
• Though everything looks alright for now, R Power IPO will suck out a lot of liquidity from the system. That can have some impact on our markets which has already witnessed a lot of selling from FIIs since November 2007. Being stock-specific is only advised.
• Subex Azure (358):- The stock has broken out and can target 400 levels. Buy with SL 335
• Lupin (635):- It is consolidating nicely and can target 730-740 level in short-term. Buy with SL 600.
• Idea, Kir Oil Eng, KPIT, Tata Motors are other stocks that look bullish on graph.



Disclaimer: These recommendations are based on the theory of technical analysis and personal observations. This does not claim for profit. I am not responsible for any losses made by traders. It is only the outlook of the market with reference to its previous performance. You are advised to take your position with your sense and judgment. I am trying to consider the fundamental validity of stocks as far as possible, but demand and supply affects it with vision variations.

By A K Prabhakar

The below given views is of my own (A.K.Prabhakar of ANANDRATHI) it doesn’t reflect companies view. U.S markets has had its impact on global markets from 1980’s so based on that the below given text is prepared.

Global market Special view: Dow has broken 13000 levels and 75week moving average which comes around 12700 is the support in many ways (Low in previous rally) and as per Dow Theory U.S market is entering bear phase. And talk of recession hitting U.S is getting bigger and Fed cutting interest rate also won’t help as inflationary pressure has to be also addressed with Crude around $98.

How will India be affected by this development?

Already Indian exports are affected by rising Rupee and any slowdown in U.S will impact our Tech & Textile sector which is highest employer in India. New generation employees have created credit beyond 4-5yrs and if no salary hike is given, it will affect them very badly. (Salary cut or unemployment would be disaster)

What impact will this have in our stocks market?

In 2007 India got 71000crs from foreign funds and if Global markets reacts then all emerging markets funds would go into safer investment like debt and gold. And with Reliance Power issue which can suck minimum of 12000 crs in liquidity, if fresh flows are hard to come we can see intermediate correction.

Do we see any slowdown in investment from FIIs?

As per data available in NSE & BSE website funds which has come into secondary markets is negative from November till date and there is no signs yet that new funds from western world would come in. Major correction in U.S market would make global investor withdraw money from emerging markets.

Is Indian markets attractive in short term?

Indian growth story is very strong but any recession globally will affect us also as high crude is benefiting Indian growth in big way as Indian employment, exports and investment come from gulf region in major way (Engineering, construction & raw material). And our stocks markets have fully priced in future growth, but still many attractive pockets remain liquidity is always very important.

What will be long term impact?

World Recession can bring slowdown in India at the maximum, but Indian growth story is a long term one which is here to stay. As India is putting infrastructure in place things would move in India favor any correction would be chance to buy for long term investor while short term is always very difficult to predict, 38000 to 45000 would be Sensex level in 4-5yrs from now.

What can derail India’s growth?

Politics and bureaucracy should speed up reform process. India is the powerful trends of demography and urbanisation: half the population is under 25 years old and 70% still live in the countryside. India needs to strengthen its infrastructure (hard and soft), reduce its stifling bureaucracy, deregulate its labour market and further develop its financial system. If it does, these two trends can help lift the economy’s potential growth rate to 10%. But without reforms, these trends can become a major liability, possibly reducing potential growth to 5-6%.

The oil price

Oil is now almost five times more expensive than it was at the beginning of 2002.

DAILY REPORT FOR 7 JANUARY, 2008

NIFTY: - Open 6179 High 6300 Low 6179 Close 6274 (+96 points)

P/E 27.80 P/B 6.43 Adv 28 Dec 21 Unch 1

Supp 6250/6175/6060 Res 6325/6370/6440

SENSEX: - Open 20367 High 20762 Low 20367 Close 20686 (+341 pts)

Supp 20500/20350/20000 Res 20800/21000/21250

300 pt rally:-

· Indices can’t give meager gains when Reliance and ONGC move together and the very thing happened on Friday. Some help from FMCG did come and Sensex closed up by 341 points.

· Volumes were a little higher - Rs 23686 Cr in spot market and F&O Vol at Rs 67181 Cr.

· Breadth was more negative than Thursday – BSE Adv 1511 Dec 1396 Unch 28 NSE Adv 536 Dec 601 Unch 8

· Top Gainers: - RPL, Sterlite, LT, ICICI Bank, Hind Unilever

Top Losers: - Sun Pharma, Nalco, NTPC, Hero Honda, Tata Motors

· FIIs bought just Rs 16 Cr and DIIs bought Rs 506 Cr in Cash Market. Foreign investors bought Rs 1072 Cr in Index Fut and sold Rs 257 Cr in Stock Fut.

· Total OI 122648 Cr (+4861 Cr) PCR at 1.40

· Nifty added 3% OI. Discount 10.15

· OI Added:- BEML 17%, Gitanjali 21%, IOB 14%, Naukri 12%, Patel 19%, Rolta 27%, Satyam 12%, STAR 14%, Sun TV 21%, Tata Motors 14%

· OI Shed:- BankNifty 12%, Minifty 11%, DLF 9%, JP Hydro 12%, NagarConst 13%, Parsvnath 5%, Petronet 6%, RelCap 6%, Sasken 9%, Sterlite 5%, Tata Power 10%, UniPhos 15%

Indian ADRs: - http://tinyurl.com/33m7dx

Global Markets:-

Dow Jones plunged 256 points on bad economic data. Nasdaq was down nearly 100 points. All Indian ADRs were in the negative. Asian markets have also opened weak.

Outlook for Monday:-

· Friday was a breakout as ONGC and Reliance Ind made things pretty simple for the indices. Now we need to sustain these levels to once again show our strength in front of other markets.

· Reliance and ONGC should again be watched as these stocks can once again help the market from tanking. Nifty has to sustain 6170 levels.

· Biocon, TTML, Indian Hotel look good to buy in dips.

· Indian Hotels (166):- Buy near 158-162 for target 185-190. Keep SL 150

Disclaimer: These recommendations are based on the theory of technical analysis and personal observations. This does not claim for profit. I am not responsible for any losses made by traders. It is only the outlook of the market with reference to its previous performance. You are advised to take your position with your sense and judgment. I am trying to consider the fundamental validity of stocks as far as possible, but demand and supply affects it with vision variations.

DAILY REPORT FOR 4 JANUARY, 2008

NIFTY: - Open 6184 High 6230 Low 6126 Close 6178 (-0.85 points)

P/E 27.80 P/B 6.43 Adv 13 Dec 37

Supp 6125/6060/5980 Res 6230/6265/6350

SENSEX: - Open 20403 High 20519 Low 20293 Close 20345 (-120 pts)

Supp 20290/20240/20000 Res 20550/20800/21000

Consolidation:-

· Indices consolidated between narrow range for the whole day and Sensex closed down by 120 points. But Nifty was very flat on account of ONGC performing. Power stocks were in demand.

· Volumes were higher - Rs 24710 Cr in spot market and F&O Vol at Rs 70651 Cr.

· Breadth was flattish – BSE Adv 1597 Dec 1307 Unch 20 NSE Adv 513 Dec 627 Unch 4

· Top Gainers: - NTPC, REL, Cairn, BPCL, Tata Power

Top Losers: - VSNL, Dr Reddy, Sun Pharma, Grasim TCS

· FIIs sold Rs 244 Cr and DIIs bought Rs 526 Cr in Cash Market. FIIs sold Rs 1241 in Index and Stock Futures.

· Total OI 117787 Cr (+4115 Cr) PCR at 1.36

· Nifty added 4% OI. There was no premium or discount as Nifty cash and futures closed almost at the same rate.

· OI Added:- Minifty 52%, Federal Bank 34%, Colgate 29%, Brigade 22%, Moser 22%, Canbk 21%, HCC 20%, Amtek Auto 19%, Dabur 17%, Tata Power 17%, Wipro 17%, Peninsula 16%, HTMT Global 15%, ITC 15%, Redington 15%, SAIL 14%, VSNL 13%, Dr Reddy 12%, Mahlife 12%, TCS 12%, BankNifty 11%, CESC 11%, STAR 11%

· OI Shed:- Uniphos 12%, AdiBirlaNuvo 9%, BongRef 7%, REL 6%, J&K 6%, IDBI 6%, EKC 6%

Indian ADRs: - http://tinyurl.com/33m7dx

Global Markets:-

American markets were flat as Dow Jones closed just 12 points higher. Indian ADRs too were flat. Asian indices have opened mixed.

Outlook for Friday:-

· Once again yesterday was a narrow range for this market despite negative Asian and US markets. Even if this is a sign of strength, market indicators say that we are near a top. This may not be a top but we are near it.

· Number of stocks hitting upper circuits is increasing daily. More than 1000 scrips are hitting only buyer circuits for the last 3-4 trading sessions. Many of them don’t have the right fundamentals to be a part of such breathtaking rallies.

· Money in the stock market is made through investing and caution is advised when a futures player also considers himself as an investor. One needs to take informed decision while deploying his hard-earned money in the stock market.

· Reliance and ONGC are near all-time highs and they can make a big difference to this market. Any positive move in these stocks and short-covering will take the market to higher orbit once again.

· Nifty levels of 6125 and 6060 look pretty important now as strength will be witnessed above these levels. A move past 6230 will force shorts to cover.

· GMR Infra (251):- Buy for target of 275-280 in short-term. Keep SL of 240.

· Tata Motors is in the final stages of winning the Ford brands. The stock can perform very well in 2008 and only investors should buy it.

Disclaimer: These recommendations are based on the theory of technical analysis and personal observations. This does not claim for profit. I am not responsible for any losses made by traders. It is only the outlook of the market with reference to its previous performance. You are advised to take your position with your sense and judgment. I am trying to consider the fundamental validity of stocks as far as possible, but demand and supply affects it with vision variations.

DAILY REPORT FOR 3 JANUARY, 2008

NIFTY: - Open 6144 High 6197 Low 6060 Close 6179 (+35 points)

P/E 27.80 P/B 6.43 Adv 23 Dec 27

Supp 6100/6050/6020 Res 6200/6265/6350

SENSEX: - Open 20393 High 20529 Low 20077 Close 20465 (+164 pts)

Supp 20300/20240/20000 Res 20550/20800/21000

Good recovery from lows:-

· Markets fell in the first half but then slowly recovered to close near all-time highs.

· Volumes were higher - Rs 22655 Cr in spot market and F&O Vol at Rs 74186 Cr.

· Breadth was positive but not so overwhelming – BSE Adv 1982 Dec 911 Unch 21 NSE Adv 673 Dec 467 Unch 3

· Top Gainers: - Unitech, PNB, HDFC, Tata Motors, REL

Top Losers: - HCL Tech, GAIL, Cairn, VSNL, Satyam Comp

· FIIs sold Rs 628 Cr and DIIs bought Rs 427 Cr in Cash Market. FIIs bought Rs 34 Cr in Index Futures and sold Rs 1037 Cr in Stock Futures.

· Total OI 113672 Cr (+4155 Cr) PCR at 1.34

· Nifty OI was almost unchanged. Premium 40.70 pts

· OI Added:- BankNifty 13%, AdiBirlaNuvo 12%, Adlabs 20%, Amtek Auto 14%, Axis 21%, BEML 13%, Bhusan 17%, BomDyeing 17%, Brigade 33%, Canbk 12%, CESC 15%, CMC 12%, Colgate 20%, Dabur 15%, Federal 13%, HTMTGlobal 53%, IndusInd 11%, IVRPrime 13%, J&K Bank 24%, Karnataka Bank 15%, MahLife 12%, Matrix Labs 19%, NagarConst 37%, NagarFert 11%, Naukri 11%, Peninsula 13%, RelCap 10%, ShreeCem 13%, Tata Power 10%, UniPhos 20%

· OI Shed:- BPCL 7%, Essar Oil 12%, Indian Bank 12%, Parsvnath 7%, Vijaya Bank 8%

Indian ADRs: - http://tinyurl.com/33m7dx

Global Markets:-

Dow Jones closes down by more than 200 points on the back of biggest decline in manufacturing in five years. MTNL ADR gained 8% and Tata Motors 3%.

Outlook for Thursday:-

· Markets to open weak on negative global cues. Cement companies can see some selling on the back of news that TN Government may take over the private companies if prices are not cut.

· Yesterday Nifty made a nice recovery from lows of 6060 but once we are below that, 6020 and 5980 can come rapidly. With results season just around, one needs to be light with positions. Correction starting from current levels is not a good sign. Any move below 5980 will be very negative for this market.

· GDL is looking very nice around current levels of 161. The stock just needs to cross 168 and it can rapidly move towards 200.

· Satyam Comp (436):- The stock has consolidated nicely and can target around 485-490 levels in days to come. Buy with SL 425

Tamil Nadu threatens to take over Cement cos http://www.business-standard.com/common/storypage_c_online.php?leftnm=10&bKeyFlag=IN&autono=31993

MTNL likely to get pan-India mobile license http://economictimes.indiatimes.com/MTNL_likely_to_get_pan-India_mobile_licence/articleshow/2670454.cms

Disclaimer: These recommendations are based on the theory of technical analysis and personal observations. This does not claim for profit. I am not responsible for any losses made by traders. It is only the outlook of the market with reference to its previous performance. You are advised to take your position with your sense and judgment. I am trying to consider the fundamental validity of stocks as far as possible, but demand and supply affects it with vision variations.